Peter D. Hancock will receive a raise when he becomes president and CEO of American International Group, Inc. on Sept. 1, according to a filing AIG made with the Securities & Exchange Commission on Monday.

In the filing, AIG said that its board agreed on Saturday to increase Mr. Hancock's annual base salary to $1.6 million while increasing his target short-term incentive compensation to $3.2 million and his target long-term incentive compensation to $7 million. Last year, Mr. Hancock — who is currently executive vice president of property/casualty insurance at AIG — received about $1.5 million in salary, with target short-term incentive compensation of $2.7 million and target long-term incentive compensation of $4.95 million. According to AIG's proxy statement, Mr. Hancock received total compensation of more than $9.6 million.

By way of comparison, the highest compensated insurer executive in Business Insurance's most recent ranking of the top highest-paid insurer heads — Travelers Cos. Inc.'s Chairman and CEO Jay Fishman — received total compensation of about $18.1 million in 2013. AIG's current President and CEO Robert H. Benmosche received total compensation of more than $14.8 million.

AIG announced in June that Mr. Hancock would succeed Mr. Benmosche — who won plaudits for turning around AIG after it received more than $180 billion in federal assistance in 2008 — as president and CEO.